Solution Manual for Managerial Accounting, 18th Edition By Ray Garrison, Eric Noreen and Peter Brewer Verified Chapter-s 1 - 16

Solution Manual for Managerial Accounting,
18th Edition By Ray Garrison, Eric Noreen and
Peter Brewer Verified Chapter's 1 - 16 |
Complete

,Table of Contents
ii ii




ChapterAiiOne:AiiManagerialAiiAccountingAiiandAiiCostAiiConcepts

ChapterAiiTwo:AiiJob-OrderAiiCosting:AiiCalculatingAiiUnitAiiProductAiiCosts

ChapterAiiThree:AiiJob-OrderAiiCosting:AiiCostAiiFlowsAiiandAiiExternalAiiReporting

ChapterAiiFour:AiiProcessAiiCosting

ChapterAiiFive:AiiCost-Volume-ProfitAiiRelationships

ChapterAiiSix:AiiVariableAiiCostingAiiandAiiSegmentAiiReporting:AiiToolsAiiforAiiManagement

ChapterAiiSeven:AiiActivity-BasedAiiCosting:AiiAAiiToolAiitoAiiAidAiiDecisionAiiMaking

ChapterAiiEight:AiiMasterAiiBudgeting

ChapterAiiNine:AiiFlexibleAiiBudgetsAiiandAiiPerformanceAiiAnalysis

ChapterAiiTen:AiiStandardAiiCostsAiiandAiiVariances

ChapterAiiEleven:AiiResponsibilityAiiAccountingAiiSystems

ChapterAiiTwelve:AiiStrategicAiiPerformanceAiiMeasurement

ChapterAiiThirteen:AiiDifferentialAiiAnalysis:AiiTheAiiKeyAiitoAiiDecisionAiiMaking

ChapterAiiFourteen:AiiCapitalAiiBudgetingAiiDecisions

ChapterAiiFifteen:AiiStatementAiiofAiiCashAiiFlows

ChapterAiiSixteen:AiiFinancialAiiStatementAiiAnalysis

,Chapter 1 Aii




Managerial Accounting and Cost Concepts
Aii Aii Aii Aii




Questions

1- ii whichAiiitAiiisAiiincurred.
1ATheAiithreeAiimajorAiitypesAiiofAiiproductAiicos
tsAiiinAiiaAiimanufacturingAiicompanyAiiareAiidire
ctAiimaterials,AiidirectAiilabor,AiiandAiimanufact
uringAiioverhead.

1-2
DirectAiimaterialsAiiareAiianAiiintegralAiipartAiiofAii
aAiifinishedAiiproductAiiandAiitheirAiicostsAiicanAiibeAiic
onvenientlyAiitracedAiitoAiiit.
IndirectAiimaterialsAiiareAiigenerallyAiismall
iiitemsAiiofAiimaterialAiisuchAiiasAiiglueAiiandAiinails.

iiTheyAiimayAiibeAiianAiiintegralAiipartAiiofAiiaAiifinished

iiproductAiibutAiitheirAiicostsAiicanAiibeAiitracedAiitoAiithe

iiproductAiionlyAiiatAiigreatAiicostAiiorAiiinconvenience.

DirectAiilaborAiiconsistsAiiofAiilaborAiicos
tsAiithatAiicanAiibeAiieasilyAiitracedAiitoAiiparticul
arAiiproducts.
DirectAiilaborAiiisAiialsoAiicalledAii―touchAiilabor.‖
IndirectAiilaborAiiconsistsAiiofAiitheAiilaborAiic
ostsAiiofAiijanitors,Aiisupervisors,AiimaterialsAiihandl
ers,AiiandAiiotherAiifactoryAiiworkersAiithatAiicannotAii
beAiiconvenientlyAiitracedAiitoAiiparticularAiiproduct
s.AiiTheseAiilaborAiicostsAiiareAiiincurredAiitoAiisuppor
tAiiproduction,AiibutAiitheAiiworkersAiiinvolvedAiidoAii
notAiidirectlyAiiworkAiionAiitheAiiproduct.

ManufacturingAiioverheadAiiincludesAiiall
iimanufacturingAiicostsAiiexceptAiidirectAiimaterials
iiandAiidirectAiilabor.AiiConsequently,

iimanufacturingAiioverheadAiiincludesAiiindirect

iimaterialsAiiandAiiindirectAiilaborAiiasAiiwellAiiasAiiother

iimanufacturingAiicosts.



1-3 AAiiproductAiicostAiiisAiianyAiicostAiiinvolved
iiinAiipurchasingAiiorAiimanufacturingAiigoods.AiiInAiithe

iicaseAiiofAiimanufacturedAiigoods,AiitheseAiicosts

iiconsistAiiofAiidirectAiimaterials,AiidirectAiilabor,Aiiand

iimanufacturingAiioverhead.AiiAAiiperiodAiicostAiiisAiia

iicostAiithatAiiisAiitakenAiidirectlyAiitoAiitheAiiincome

iistatementAiiasAiianAiiexpenseAiiinAiitheAiiperiodAiiin

, 1-4
VariableAiicost:AiiTheAiivariableAiicostAiiper
iiunitAiiisAiiconstant,AiibutAiitotalAiivariableAiico

stAiichangesAiiinAiidirectAiiproportionAiitoAiicha
ngesAiiinAiivolume.
FixedAiicost:AiiTheAiitotalAiifixedAiicostAiiis
iiconstantAiiwithinAiitheAiirelevantAiirange.AiiThe

iiaverageAiifixedAiicostAiiperAiiunitAiivaries

iiinverselyAiiwithAiichanges iAiAinAiivolume.

MixedAiicost:AiiAAiimixedAiicostAiicontai
nsAiibothAiivariableAiiandAiifixedAiicostAii
elements.

1-5
UnitAiifixedAiicostsAiidecreaseAiiasAiitheAiiactivi
tyAiilevelAiiincreases.
UnitAiivariableAiicostsAiiremainAiiconstantAii
asAiitheAiiactivityAiilevelAiiincreases.
TotalAiifixedAiicostsAiiremainAiiconstantAii
asAiitheAiiactivityAiilevelAiiincreases.
TotalAiivariableAiicostsAiiincreaseAiiasAiit
heAiiactivityAiilevelAiiincreases.

1-6
CostAiibehavior:AiiCostAiibehaviorAiirefersAiitoAiit
heAiiwayAiiinAiiwhichAiicostsAiichangeAiiinAiirespo
nseAiitoAiichangesAiiinAiiaAiimeasureAiiofAiiactivity
AiisuchAiiasAiisalesAiivolume,AiiproductionAiivolu

me,AiiorAiiordersAiiprocessed.
RelevantAiirange:AiiTheAiirelevantAiirangeAiiis
AiitheAiirangeAiiofAiiactivityAiiwithinAiiwhichAiias

sumptionsAiiaboutAiivariableAiiandAiifixedAiic
ostAiibehaviorAiiareAiivalid.

1-7 AnAiiactivityAiibaseAiiisAiiaAiimeasureAiiof
iiwhateverAiicausesAiitheAiiincurrenceAiiofAiia

iivariableAiicost.AiiExamplesAiiofAiiactivityAiibases

iiincludeAiiunitsAiiproduced,AiiunitsAiisold,

iilettersAiityped,AiibedsAiiinAiiaAiihospital,Aiimeals

iiservedAiiinAiiaAiicafe,AiiserviceAiicallsAiimade,

iietc.



1-8 TheAiilinearAiiassumptionAiiisAiireasonably
iivalidAiiprovidingAiithatAiitheAiicostAiiformulaAiiisAiiused

iionlyAiiwithinAiitheAiirelevantAiirange.